AB InBev released its third quarter 2024 financial report on Thursday, showing profits, revenues, and volumes that fell short of market expectations. Despite challenges in key markets such as the United States, Mexico, and China, the company raised its full-year guidance and announced a USD 2 billion share buyback program to be executed over the next 12 months.
AB InBev reported a 7.1% increase in normalized EBITDA for the third quarter, which fell short of analyst forecasts of 8.6% growth. Revenues rose by 2.1%, missing the expected 3.4% increase, while total volumes declined by 2.4%, exceeding the anticipated 0.4% decrease. Underlying earnings per share (EPS) improved to USD 0.98, marking a 14% rise from USD 0.86 in Q3 2023.
The company faced notable market-specific challenges, particularly in the United States, its largest market, where sales to wholesalers dropped by 0.2% and sales to retailers fell by 3%. No detailed explanation for this decline was provided. In Mexico, volumes saw a low single-digit decline driven by adverse weather and weakened consumer demand. In China, revenues dropped by 16.1% and volumes decreased by 14.2%, mainly due to weaker sales in on-premise locations such as bars and restaurants.
CEO Michel Doukeris expressed confidence in AB InBev's strategy, stating, “Our teams and partners continue to execute our strategy, and we are confident in our ability to deliver.” The company raised its full-year organic core profit (EBITDA) growth outlook to 6-8%, up from a prior range of 4-8%.
AB InBev reinforced its commitment to shareholder value with the approval of a USD 2 billion share buyback program. The company remains focused on digital innovation, sustainability, and premiumization to drive long-term growth.
